Viditrade Day-Trading Updates - 08-30-2016

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK (pre-open Market Tour begins at 8:55 ET)

Through the prior close... After rallying throughout the morning from 2169.00 at Monday's open, the afternoon was contained by its 2182.00 bias-up signal. Not actually probing it -- not stretching the rubber band tightly -- avoided a steep reaction back down. But there was a modest reaction which eventually extended down to 2178.25. No traction was gained Overnight action's new info... The downward slope of last night's shallow 4-point range differs from the prior two narrow overnight sessions that had ranged sideways. Not that much downside was covered after firming to attack 2181.00. Extending yesterday's late-afternoon slide has tested 2177.00 as support. If, then... Resuming Monday morning's rally requires gapping up Tuesday above Monday's 2182.00 high. That's not currently indicated, nor is it being attempted, but it's not too far away. And the two prior narrow overnight ranges began trending immediately at the open. Extending Monday's late afternoon reaction down would not be required to probe under Monday's intraday range. But their retest would be likely to break lower. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2177.00 would be unlikely to trigger this morning's 2174.25 bias-down signal at 10:15. Exiting the open under 2171.50 would be likely to trigger bias-down.

Delayed resumption of yesterday's late reaction down. The third consecutive narrow overnight range once again broke sharply at the open. But this time, not until the open. And the opening break was reversed. Actually, today's opening break up to 2181.50 was retraced back to the 2178.00 open, which held through the half-hour. Finally breaking lower still had not touched the 2174.25 bias-down signal until the very end of the 3-minute window either way around 10:15. Having invoked the grace period, 2174.25 was still being touched at 10:30 to trigger noN-bias.

So, the bias-down target is not in-play, and neither is an offsetting test of the bias-up signal. The 2179.75-2171.50 objective of yesterday's late-reaction down from 2182.00 has been pierced.

Since the break is not "no-bias trending" that would require a recovery, this morning's dip can become something more substantial. With tomorrow being peak liquidity ahead of a three-day holiday weekend, any near-term trending must be underway before then -- which makes a break under Friday's lows possible today or tomorrow.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2180.00 2178.50 ...would target  2185.00  2183.50 Bias-down: under  2172.25 2170.75 ...would target 2167.50  2166.00 Signal status: NO-BIAS FAQ INTRO VIDEOS #1 and #2 1. At 1:20, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target. 2. Not triggering either bias signal at 1:20 would be "no-bias," and the bias signals should define the bias environment's range. -- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias. 3. Touching the bias signal within 3 minutes either way of 1:20 would invoke a grace period through 1:30 to trigger a late signal. -- "Late" signals don't require testing the opposite bias signal, but it's still likely. 4. Still testing the bias signal at 1:30 after invoking the grace period would trigger "noN-bias," with no bias influence.

Sitting at support. Yesterday afternoon's pullback objective was 2171.50. The effort stopped short before the close, and took awhile restarting this morning. But 2171.50 was touched at this morning's low. And has since held. The noon hour bounced to 2176.00 and the bias environment is within 1 tick of 2171.50. Being no-bias, the 2107.75 bias-down signal should define the low if tested... until the bias environment begins lapsing. Breaking lower as the bias environment lapsing comes into view would essentially target a retest of Friday's 2157.50 low. Breaking lower prematurely should at least tag-up with the bias-down signal before extending. That tag-up could recover, instead.

Tuesday's slide into the afternoon's bias environment exit could have collapsed from there. Touching the 2171.50 pullback limit had already produced a bounce during the morning. And the cusp between timing windows allowed new sponsorship to gain traction. But new sponsorship did not arrive, and the market bounced into the close. The setup was similar to Friday afternoon's low. Which makes sense, since the market is still trading off of that setup. The bounce into Monday's high was its extension. The question now is whether the reaction down into Tuesday's lows is about to accelerate into a new downleg, or else resume extending late Friday's bounce. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2182.00 2180.50 ...would target  2189.50  2188.00 Bias-down: under  2173.00  2171.50 ...would target 2167.50  2166.00 Signal status: LATE BIAS-DOWN FAQ INTRO VIDEOS #1 and #2 1. At 10:15, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target. 2. Not triggering either bias signal at 10:15 would be "no-bias," and the bias signals should define the bias environment's range. -- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias. 3. Touching the bias signal within 3 minutes either way of 10:15 would invoke a grace period through 10:30 to trigger a late signal. -- "Late" signals don't require testing the opposite bias signal, but it's still likely. 4. Still testing the bias signal at 10:30 after invoking the grace period would trigger "noN-bias," with no bias influence.